The Hindu Business Line : KPR Mill charts capex plans

Coimbatore, July 30 KPR Mill Ltd, the integrated textiles and clothing company which is implementing a Rs 472-crore capacity expansion programme, has said the company’s capacity doubling to be achieved by 2008 is to meet the demands of its multi-national value retailers who prefer end-to-end apparel manufacturing services from their suppliers.

The Rs 512-crore turnover company currently exports knitted garments to global major retailers/brands and its export turnover works out to 27% of its total sale.

The current expansion covering its spinning, fabric production and garmenting will enable KPR scale up its spindle capacity to 2.12 lakh from the present 1.12 lakh (that will double its yarn production from 27,000 tonnes to 54,000 tonnes per annum), its knitted fabric production from 8,200 tonnes to 17,200 tonnes and its garmenting from 12 million pieces to 25.9 million pieces.

It is also setting up a greenfield textile processing plant at a cost of Rs 56 crore at Perundurai with a 23 tonnes processing capacity. Its wind energy projects forming part of expansion will lift up its wind energy generation from 19.27mw to 39.07mw.

KPR Mill, which is hitting the capital market on August 2, to fund its capacity expansion has reported that its integrated manufacture facilities have enabled the company to have lowest energy cost at 3 per cent of its sales as against the industry average of 7.8 per cent and its employee cost at 2.75 per cent as compared to 7.9 per cent.

The company which has proposed to offer 59.12 lakh equity shares of Rs 10 each through book-building route, has fixed the price band at Rs 225-265 per share.

The company is set to raise Rs 157 crore at the upper price band set for its IPO.

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